Many people choose to buy silver coins as an investment. Others acquire silver coins as a hobby or to build a collection to pass down to future generations. Before choosing to buy silver coins, make sure that you know the value of your coins and that you make your purchase from a reputable dealer.

Steps

Method1

Determine the Value of Silver Coins

1

Evaluate the precious metal content by checking an online coin melt calculator. The value of 90 percent silver coins (minted prior to 1964) tends to vary directly with the activity of the silver bullion market. However, in the case of rare silver coins, the precious metal content has little influence on the coins’ ultimate value.

2

Find out how many similar coins were minted.

Find the mint mark. Coins minted prior to 1968 will usually have mint marks on the reverse, while coins minted after 1968 will have mint marks on the front. The mint mark tells you where the coin was made.

Note the year of the coin. When you know the location and the year of the coin, you can find out how many copies of the coin were minted at that time by checking a coin price guide or a coin encyclopedia. Coin lines with fewer minted copies tend to be more valuable than coin lines in which many copies were minted.

Search coin encyclopedias for any major varieties or errors. Some years and mints will have rare doubled die errors, or variations in the designs of the coins, especially with popular older coins that may be silver, such as Morgan Dollars. Particularly with Morgan Dollar Varieties (VAM Varieties), there are numerous variations for each year/mint and some command a very large premium. Varieties can be particularly rare and valuable even if the year and mint is common.

3

Evaluate the condition of the coins.

Examine the luster. The luster is the degree to which light reflects from a coin’s surface. Microscopic lines in the design will impact luster, and luster will diminish as the coin’s surface finish wears away.

Notice the color. Color can be negatively altered if the coins have been chemically cleaned. Look for vibrancy of color and the natural hue of silver.

Look for detracting marks, like fingerprints, that result from improper packaging or handling.

Evaluate overall eye appeal. Eye appeal is influenced by carbon streaks, vinyl damage, and other striking defects. While this category is a bit subjective, factors that detract from a coin’s overall appearance will lessen its value.

4

Consider the popularity of the series. Series that are rarer or have a higher demand will price higher than more common series.

Check a site like eBay and evaluate the price of the coin. If a coin is rare, people tend to bid the price up to high levels.

Check a coin price book or other publication once you know the mint location, condition, and year of production. This will give you the book value of the coin, although market conditions could have further influences on the price.

5

Note any historical significance. If a coin was produced during a certain time period or to commemorate a specific event, it may have added value. Read up on your coin’s history in a price guide or an encyclopedia.

6

Account for unique design elements. Occasionally, minting errors result in one-of-a-kind coins that are far more valuable than other coins from the same period. Read about your minted coin in a coin price guide or encyclopedia to find out if you should look for any unique markings that will add to its value.

Method2

Purchase Coins from a Dealer

1

Choose a reputable dealer. You will be depending a bit on their expertise, so you should pick a dealer that you are comfortable doing business with.

Verify the length of time that the dealer has been in business. A measurable business history means that the dealer is more likely to be experienced and reliable.

Work with a dealer who offers a variety of coins. If silver coins lose value or if you decide to expand your investment options, this will save you the trouble of finding a new dealer.

2

Consider a dealer who is an Authorized Purchaser working with the United States Mint. Choosing a dealer who is authorized by the U.S. Mint gives you an extra level of assurance and security.

Know that most Authorized Purchasers have been in business for at least 5 years and have a well-established wholesale network.

Rest assured that Authorized Purchasers have had a full financial audit by an independent Certified Public Accounting firm recognized by the American Institute of Certified Public Accountants.

Know that Authorized Purchasers are well capitalized. These dealers must have a net worth of $10 million for at least 3 fiscal years.

3

Verify the current market price of silver before making a purchase. You should go into the price negotiation knowing that the U.S. Mint charges dealers $2 per coin as a purchase premium. Expect the dealer to charge you a reasonable premium on top of the price of silver.

4

Avoid purchasing coins online unless you have experience in grading. The one exception to this rule would be making online purchases from the U.S. Mint.